Jarvis is starting a business requiring initial start-up of $5.5 million. The business is projecting a net cash flow per month of $100,000. How many months will it take to make back his start-up investment?
A) 5.5
B) 55
C) 20
D) None of the above

Question

Quizplus · Accepted Answer

To calculate the number of months it will take to make back the start-up investment, we divide the initial investment by the net cash flow per month:

$5,500,000 / $100,000 = 55 months

Therefore, it will take 55 months to make back the start-up investment.

Jarvis Is Starting a Business Requiring Initial Start-Up of $5